Anglo American sells two Chilean copper mines

Anglo American has agreed to sell its Mantoverde and Mantos Blancos copper mines in northern Chile to an investor consortium led by Audley Capital Advisors for an up-front cash consideration of $300m.

The total consideration payable to Anglo consists of $300m in cash payable at closing and a number of additional future payments totalling up to $200m, contingent on factors such as the average London Metals Exchange copper price performance and any future decision to pursue the sulphide life extension of the Mantoverde mine.

Chief executive Mark Cutifani said: "The sale of our Norte copper assets to the Audley consortium represents a good outcome for Anglo American, both in terms of the up-front value achieved, the potential upside geared to the copper price and the continued delivery of our asset disposal programme.

“In line with our strategic objectives, we are focusing our diversified portfolio on our largest and most value accretive assets, which include the Los Bronces and Collahuasi copper mines in Chile and the Quellaveco copper project in Peru."

The deal is expected to close in the third quarter of this year.

Investec said: “While a modest transaction, the $300m is well above the valuation we had for the asset so a good outcome for Anglo American.”

At 0946 BST, Anglo shares were down 4.9%, in line with a weak market as mining stocks took a hit on concerns about a slowdown in China.